- Amazon abandons acquisition of iRobot, citing European regulatory hurdles
Amazon has halted its $1.45 billion acquisition of iRobot ahead of an expected formal objection from European Union regulators, the two companies said Monday.
iRobot described the blockage in a release as “a loss for consumers, competition and innovation” and suggested there was “no path to regulatory approval.”
The company is known for developing the Roomba robot vacuum cleaner – perhaps the most popular autonomous consumer robot and introduced in 2002.
Amazon abandons acquisition of iRobot, citing European regulatory hurdles
Amazon announced the move to expand its stable of smart home devices in August 2022
The deal was first challenged last year on the grounds that Amazon could limit the visibility of competing robot vacuum cleaners on its site.
It comes as iRobot announced it would lay off nearly 350 people — about a third of its employees — and chairman and CEO Colin Angle would step down.
iRobot said it would cut back on research and ‘non-floorcare’ products such as air purifiers and robotic lawnmowers.
“The termination of the agreement with Amazon is disappointing, but iRobot now looks to the future with a focus and commitment to continue building thoughtful robots and intelligent home innovations that make lives better,” iRobot’s Angle said in a press release.
iRobot shares fell more than 15 percent when markets opened Monday morning.
Amazon announced the deal in August 2022. The world’s largest online retailer, which already owns Alexa and Ring, was pushing to expand its stable of smart home devices.
Critics opposed the deal, saying it would strengthen Amazon.com’s already powerful position in smart home devices.